China-US trade war, Brexit to hit SL : PM

Prime Minister Ranil Wickramasinghe said the China-US trade war and a disorderly Brexit will have a significant unavoidable impact on the Sri Lanka’s economy.

Wickramasinghe was addressing the opening session of Sri Lanka Economic Summit 2019 which commenced in Colombo earlier today.

He said China US trade war will result in a 8% drop from global trade.

China and the US have however  open doors for negotiations.

China’s Finance Vice-Minister Liao Min will go to the United States for trade negotiations on Wednesday.

Liao will lead a delegation to Washington in preparation for the face-to-face meeting to be held next month between Chinese Vice-Premier Liu He, US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin.

Wickramasinghe also expressed concerns over a no deal Brexit. He said UK has been a long standing trading partner, and  Brexit is ought to have a huge affect on Sri Lanka’s economy.

The UK has signed a “continuity” trade agreement with South Korea, allowing businesses to keep trading freely after Brexit.

However there seems to be no signs of negotiations for a continuity agreement between the UK and Sri Lanka.

Speaking further Wickramasinghe said the NAFTA, TPP, EU, WTO were under strain and will have a considerable impact on free trade.

He said a sharp slow down in majour economies through subdued investment and demand, and national rivalry amoung countries were added concerns to the Sri Lankan economy.